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5 Reasons to Upgrade/Replace an ERP System

Previously, I shared with everyone the importance of selecting a suitable ERP (Enterprise Resource Planning) system for enhancing operational efficiency and increasing revenue. However, sometimes business owners express that despite using an ERP system, they have not achieved the expected results or experienced the anticipated convenience in their operations. In such cases, it may be necessary to consider upgrading or even replacing the ERP system. Today, I will share with you five reasons for upgrading or replacing an ERP system.
2023年9月22日

1. Outdated Technology

Many customers using legacy ERP systems may be biased that ERP systems are inherently complex and time-consuming to learn. This perception arises from outdated ERP systems often having complex user interfaces and operations, requiring lengthy steps to accomplish tasks. Modern ERP systems incorporate updated technologies that enable users to execute complex processes with fewer steps and through user-friendly interfaces, ultimately improving operational efficiency.

2. Limited Software Flexibility

Legacy ERP systems may have been built on outdated platforms, preventing them from integrating with more efficient software used by the business. As a result, the ERP system becomes a bottleneck in the company's operations, unable to enhance office workflows and efficiency. When considering a replacement ERP system, it is crucial to inform the service provider about the other software currently used by the company to ensure maximum compatibility and efficiency of the new ERP system.

3. System Capacity Cannot Keep Pace with Business Growth

As technology advances, the capacity of different files and software has significantly increased compared to the past. Current systems, files, and software have grown exponentially in capacity. Suppose the existing ERP system has insufficient capacity and cannot keep up with the usage requirements of other software or files within the company. In that case, it will simply be unable to fulfil its role as an ERP system. In such cases, it is necessary to consider whether the cost of system upgrades outweighs the cost of system replacement.

4. Inadequate Data Analysis and Reporting Speed

In addition to facilitating data input across different departments, an ERP system should also be capable of data analysis and providing insights. With advancements in technology, various data analysis and artificial intelligence software are now available. However, if the ERP system does not support these capabilities, it cannot fully leverage the potential of the ERP system. Higher operational efficiency can be achieved by upgrading or replacing the ERP system, even using the same database.

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